Aerospace and Defense Sector Outlook — September 2026

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INDUSTRIALS › CAPITAL GOODS › AEROSPACE AND DEFENSE

Aerospace and Defense: The Earnings Premium Sits with the Names Pairing Growth and Margin

How the market rates 35 aerospace and defense companies on forward earnings, which business models hold the upper band, and what the transaction record shows.

September 2026 · Prepared by NeuraCap AI · Confidential

Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E)

Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice

Sources & methodology

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1. 01
   INDUSTRIALS › CAPITAL GOODS › AEROSPACE AND DEFENSE

   Aerospace and Defense: The Earnings Premium Sits with the Names Pairing Growth and Margin

   Cover slide introducing the September 2026 Aerospace and Defense sector outlook.

   We open with the finding: within Aerospace and Defense, the earnings premium sits with names that pair growth and margin, not simply size. The pages ahead show where that premium sits and what separates it from the rest of the sector.

   Everything on this page

   INDUSTRIALS › CAPITAL GOODS › AEROSPACE AND DEFENSE Aerospace and Defense: The Earnings Premium Sits with the Names Pairing Growth and Margin How the market rates 35 aerospace and defense companies on forward earnings, which business models hold the upper band, and what the transaction record shows. September 2026 · Prepared by NeuraCap AI · Confidential Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E) Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 1

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   CONTENTS

   What This Report Covers

   Contents page listing the report's five sections and appendix.

   This report runs five sections plus an appendix, starting with the bottom line so a reader who stops early still gets the full story. We built it this way so the conclusion comes first, with the evidence to follow for anyone who wants to go deeper.

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   CONTENTS What This Report Covers 01 The Bottom Line The Upper Band Sits Alongside Qualified Content and Faster Growth 02 The Landscape Most of the Set Carries the Prime Label, and the Pricing Inside It Varies 03 Valuation & Situations One Sector, Three Bands of Forward Earnings Multiples 04 Precedent Transactions The Transaction Record Puts a Price on Content and Autonomy 05 Strategic Implications The Work That Moves a Business Toward the Upper Band 06 Appendix Comparables Detail, Methodology, Sources and Assumptions Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 2

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   01 · THE BOTTOM LINE

   Aerospace and Defense Splits into Four Businesses: Primes, Precision Components, Defense IT and Adjacent Models

   The bottom-line page states that the sector splits into four business models with different valuations.

   Aerospace and Defense reads as one label but prices as four distinct businesses, each rated differently on CY2027E EV/EBITDA. We use this page to set the frame: primes, precision components, defense IT and adjacent models each carry their own multiple, and the sections that follow show why. That framing is what lets us move from 'the sector is expensive' to 'these specific businesses earn their premium' — the more useful question for a client to act on.

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   01 · THE BOTTOM LINE Aerospace and Defense Splits into Four Businesses: Primes, Precision Components, Defense IT and Adjacent Models The full story on one page · figures on EV / EBITDA (CY2027E), market data as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (20 of 35 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Qualitative characterisations are NeuraCap views. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 3 1 The Range Is Wide Enough to Change What a Business Is Worth Across the 20 names with a forward estimate, the middle of the range sits at 13.2x forward EBITDA, the top of the range at 24.9x and the bottom at 8.0x. The lens is CY2027E, so forecast growth is already inside the number — a premium that survives it points to durability rather than one good year. 2 The Upper Band Sits with the Faster-Growing Half Split the 20 names with a forward estimate at 7% revenue growth and the faster half sits at 17.7x against 11.1x for the slower half, with 10 names on each side. The gap is an observed association between growth and rating, not a mechanism the screen can prove. 3 Recompete-Exposed Services Sit at the Bottom, Qualified Content at the Top The two defense IT and mission support names are rated at 7.4x, against 16.7x for the two precision flow control and engineered aerospace components names. Services work carries recompete exposure and fee-capped economics; qualified component content carries parts approvals and a sustainment tail. 4 Revenue Rank and the Earnings Multiple Move Separately Here The three largest platforms hold 51% of forward revenue, yet several of the largest names sit in the middle and lower bands. The Boeing Company (BA) at 18.9x sits inside the upper band, so size on its own does not line up with where a company is rated. 13.2x Sector median EV/EBITDA CY2027E consensus · 20 rated of 35 companies 24.9x Premium end EV/EBITDA vs 8.0x at the discount end top quartile (n=5) against bottom quartile (n=5) on EV/EBITDA — the spread the report explains 34 Transactions with disclosed terms 74 recorded in this tier · 3 told as case studies, the full list in the appendix

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   SECTION 02

   02

   Divider introducing the market-map section on business-model segmentation.

   Most of this universe carries the prime label, but the pricing underneath tells a more granular story. This section shows how 35 companies split across four business models and where each is rated.

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   SECTION 02 02 THE LANDSCAPE Most of the Set Carries the Prime Label, and the Pricing Inside It Varies How 35 aerospace and defense companies split across four business models and where each is rated. 02 of 06 Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 4

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   02 · MARKET MAP

   Three in Four Companies Wear the Prime Label; The Pricing Says Four Businesses

   Groups the 35 approved companies by business segment and shows each group's median EV/EBITDA multiple.

   Three in four companies in this set wear the prime label, yet the pricing says the sector actually runs on four separate business models. We group all 35 approved companies by segment and show the median multiple each group carries, so the client can see where the label stops explaining the price. That gap between label and pricing is the starting point for every valuation conversation that follows.

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   02 · MARKET MAP Three in Four Companies Wear the Prime Label; The Pricing Says Four Businesses 35 approved companies grouped by business segment · median EV / EBITDA (CY2027E) per group · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Segment grouping follows the platform's classification; group medians on rated names only. "Why it matters" lines are NeuraCap views. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 5 DIVERSIFIED DEFENSE PRIMES 27 cos median 13.2x BA LMT GD HWM TDG NOC HEI LHX ESLT TXT HII SARO DRS AVAV KTOS KRMN BETA VVX ACHR VOYG RCAT +6 more The largest group by count, spanning platform primes, aftermarket suppliers and growth-stage unmanned systems names. PRECISION FLOW CONTROL AND ENGINEERED AEROSPACE COMPONENTS 2 cos median 16.7x ITT CR Two names whose qualified content and repair approvals give them aftermarket economics inside an industrial wrapper. DEFENSE IT AND MISSION SUPPORT SERVICES 2 cos median 7.4x LDOS PSN Two names selling mission support, where fee economics are capped and the work is periodically re-competed. ADJACENT MODELS 4 cos median 17.7x HON B ESE JOBY Four names whose economics come from outside the defense contracting chain; useful as context rather than as direct peers.

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   02 · LANDSCAPE

   One Label Holds Three Different Economics, and the Ratings Follow the Economics

   Explains what each business segment does and why the market rates it differently.

   One label holds three different economics, and the ratings follow the economics rather than the label. We walk through what each segment actually does and why the market prices it the way it does, with full company detail available in the appendix for anyone who wants to check a specific name. Understanding the economics behind the label is what lets a management team argue for a different rating.

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   02 · LANDSCAPE One Label Holds Three Different Economics, and the Ratings Follow the Economics Segment view of the approved universe · EV / EBITDA (CY2027E) medians on rated names · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. "What they do / why it matters" is a NeuraCap view. Full company-level detail in the appendix and companion tables. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 6 Segment n Share of universe Median EV/EBITDA Names to know What they do — and why it matters Diversified defense primes 27 77% 13.2x The Boeing Company (BA) · Lockheed Martin Corporation (LMT) · +25 more The spine of the sector. 27 of the 35 companies carry this label, 77% of the set, and 14 of them are rated, sitting at a median of 13.2x. Platform primes, aftermarket suppliers and growth-stage unmanned systems names share the label, and their multiples run across all three bands. Precision flow control and engineered aerospace components 2 6% 16.7x ITT Inc. (ITT) · Crane Company (CR) Engineered content, aftermarket attached. ITT Inc. (ITT) and Crane Company (CR) are 6% of the set and both are rated, at a median of 16.7x. Qualified flow-control and engineered components carry parts approvals and a repair tail that hold up through award delay. Defense IT and mission support services 2 6% 7.4x Leidos Holdings, Inc. (LDOS) · Parsons Corporation (PSN) Services work, recompete exposed. Leidos Holdings, Inc. (LDOS) and Parsons Corporation (PSN) are 6% of the set and both are rated, at a median of 7.4x. Fee-capped contract economics and a standing recompete calendar sit alongside the bottom of the segment range on this page. Adjacent models 4 11% 17.7x Honeywell International Inc. (HON) · Barrick Mining Corporation (B) · +2 more Adjacent economics, different buyers. Honeywell International Inc. (HON), Barrick Mining Corporation (B), ESCO Technologies Inc. (ESE) and Joby Aviation, Inc. (JOBY) are 11% of the set, and 2 of the 4 carry a forward estimate. Their earnings come from outside the defense contracting chain, so read this group as context for the sector rather than as a peer benchmark.

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   SECTION 03

   03

   Divider introducing the public-market valuation section.

   One sector splits into three bands of forward earnings multiples. This section shows where the 20 rated names sit and what the two ends of the range have in common.

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   SECTION 03 03 VALUATION & SITUATIONS One Sector, Three Bands of Forward Earnings Multiples Where the 20 names with a forward estimate sit, and what the two ends have in common. 03 of 06 Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 7

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   03 · PUBLIC MARKET VALUATION

   Owning Qualified Content Shows up at the Top of the Range

   Ranks all 20 rated companies by EV/EBITDA (CY2027E) against the sector median of 13.2x.

   Owning qualified content shows up at the top of the range, and the sector median across all 20 rated companies sits at 13.2x. We sort every rated name descending on EV/EBITDA (CY2027E) so the client can see exactly where a given company sits against the full distribution. That ranking is the reference point every other page in this section builds on.

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   03 · PUBLIC MARKET VALUATION Owning Qualified Content Shows up at the Top of the Range EV / EBITDA (CY2027E) · all 20 rated companies, sorted descending · sector median 13.2x · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (20 of 35 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Tier zones are NeuraCap groupings cut at the rated set's quartiles; every multiple quoted on this page is a median on the same EV / EBITDA (CY2027E) basis. Panel commentary is a NeuraCap view. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 8 PREMIUM · median 24.9x CORE · median 13.2x DISCOUNT · median 8.0x Sector median 13.2x WHAT SEPARATES THE TWO ENDS Five names hold the top. Honeywell International Inc. (HON), Elbit Systems Ltd. (ESLT), Howmet Aerospace Inc. (HWM), AeroVironment, Inc. (AVAV) and Karman Holdings Inc. (KRMN) sit at a median of 24.9x. The lens is CY2027E, so forecast growth is already credited; what remains in the premium is the market's read on program life and content ownership. Five names hold the bottom. Leidos Holdings, Inc. (LDOS), V2X, Inc. (VVX), Textron Inc. (TXT), Parsons Corporation (PSN) and Barrick Mining Corporation (B) sit at a median of 8.0x. Two of the five are defense IT and mission support names, where fee-capped work and recompete exposure sit alongside the lower rating. Ten names sit in between. 20 of the 35 companies on this page carry a forward estimate, and half of those sit in the middle band, including Lockheed Martin Corporation (LMT), General Dynamics Corporation (GD), Northrop Grumman Corporation (NOC) and The Boeing Company (BA). What separates names inside that band is a question for diligence on funded backlog, contract mix and recompete calendar.

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   03 · VALUATION DRIVERS

   Profitability Separates the Two Ends: Names Above the 14% Margin Line Carry 16.7x Against 10.4x Below It

   Splits the rated names by growth and margin cohort and compares the median multiple in each.

   Profitability separates the two ends of the range: names above the 14% margin line carry 16.7x against 10.4x below it. We split the rated set on both revenue growth and EBITDA margin to show which driver correlates more closely with the multiple, treating this as an observed association rather than a proven cause. For a management team asking where to focus, this page points at margin and growth together, not either alone.

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   03 · VALUATION DRIVERS Profitability Separates the Two Ends: Names Above the 14% Margin Line Carry 16.7x Against 10.4x Below It Median EV / EBITDA (CY2027E) by revenue-growth cohort and by EBITDA-margin cohort (each split at its covered median) · rated names with estimates · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Cohort medians on rated names with the required estimates (faster n=10; slower n=10; higher-margin n=10; lower-margin n=10). Driver readings are NeuraCap views on the supplied data — association, not causation. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 9 EV/EBITDA, median per cohort · growth split at 7% · EBITDA-margin split at 14% Growth Above the Sector Bar Sits with the Upper Ratings Among the 20 names with a forward estimate, the 10 growing faster than 7% sit at a median of 17.7x against 11.1x for the 10 below. Because the lens already credits CY2027E forecasts, the gap is best read as the market's view on how durable that growth looks, and it is an association rather than a proven mechanism. Margin on Its Own Sits with a Smaller Premium than Margin Plus Growth Split at 14% EBITDA margin, the 4 names clearing the margin bar alone sit at 15.6x, against 17.4x for the 6 names clearing both the margin and growth bars. On groups of 4 and 6 names, treat that difference as directional. Proprietary Content and Margin Travel Together at the Top Howmet Aerospace Inc. (HWM) at 32% margin and Karman Holdings Inc. (KRMN) at 30% pair content with growth above the sector bar, and both sit in the top band. Qualified parts, data rights and a sustainment tail are the operating features that group has in common. Recompete Calendars and Fixed-Price Development Risk Sit with the Lower Band The 6 names clearing neither bar sit at 8.6x, the bottom of the four groups on this page. Single-program concentration, recompete exposure and fixed-price development risk are the items an owner can work on, by shifting mix toward funded, sole-source content with longer program life.

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    03 · SITUATION MAP

    Seven Names Sit Above the Sector on Both Measures, Seven Below on Both

    Maps rated companies into quadrants using the sector median multiple and covered growth median.

    Seven names sit above the sector on both revenue growth and multiple, and seven sit below on both. We use the sector median EV/EBITDA of 13.2x and the covered growth median of 7% to cut the set into quadrants, framed as observations rather than recommendations. This map is where a client can locate their own position before we turn to what moves it.

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    03 · SITUATION MAP Seven Names Sit Above the Sector on Both Measures, Seven Below on Both Cut on EV / EBITDA vs the sector median (13.2x) (rows) and revenue growth vs the covered median (7%) (columns) · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Situation boundaries are the cohort's own medians (Directional, NeuraCap view). This page characterises situations; it does not recommend buying or selling any security. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 10 Rated up and Growing Above-median multiple · above-median revenue growth 7 names The Boeing Company (BA) · Howmet Aerospace Inc. (HWM) · Elbit Systems Ltd. (ESLT) · +4 more The Boeing Company (BA), Howmet Aerospace Inc. (HWM), Elbit Systems Ltd. (ESLT), ITT Inc. (ITT), Leonardo DRS, Inc. (DRS), AeroVironment, Inc. (AVAV) and Karman Holdings Inc. (KRMN) sit above the sector on both measures. With CY2027E growth already inside the multiple, the live question for this group is program life and funded backlog behind the forecast. Premium Alongside Margin, Not Growth Above-median multiple · below-median revenue growth 3 names Honeywell International Inc. (HON) · Northrop Grumman Corporation (NOC) · Crane Company (CR) Honeywell International Inc. (HON), Northrop Grumman Corporation (NOC) and Crane Company (CR) hold an above-median multiple with growth below the sector. The premium here sits alongside margin and installed-base sustainment work rather than alongside top-line expansion. Growing Ahead of the Rating Below-median multiple · above-median revenue growth 3 names Barrick Mining Corporation (B) · L3Harris Technologies, Inc. (LHX) · StandardAero, Inc. (SARO) Barrick Mining Corporation (B), L3Harris Technologies, Inc. (LHX) and StandardAero, Inc. (SARO) are growing faster than the sector on a below-median multiple. For owners in this position the evidence a buyer would test is contract mix, funded backlog and whether margin progression holds through the cycle. Below on Both Measures Below-median multiple · below-median revenue growth 7 names Lockheed Martin Corporation (LMT) · General Dynamics Corporation (GD) · Leidos Holdings, Inc. (LDOS) · +4 more Lockheed Martin Corporation (LMT), General Dynamics Corporation (GD), Leidos Holdings, Inc. (LDOS), Textron Inc. (TXT), Huntington Ingalls Industries, Inc. (HII), Parsons Corporation (PSN) and V2X, Inc. (VVX) sit below the sector on both measures. Several carry cost-reimbursable or recompete-exposed mix, where fee economics cap margin; shifting toward sole-source content has the most reach.

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    03 · GROWTH VS PROFITABILITY

    Clearing Both Bars Sits with the Upper Multiples; Clearing Neither Sits at the Bottom

    Plots the 20 rated companies on revenue growth versus EBITDA margin, with median multiple by quadrant.

    Clearing both the growth and margin bars sits with the upper multiples, and clearing neither sits at the bottom. We plot all 20 companies with both estimates against the covered medians of 7% growth and 14% margin, with a median multiple shown for each quadrant. The pattern gives a client a concrete two-axis test to run against their own numbers.

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    03 · GROWTH VS PROFITABILITY Clearing Both Bars Sits with the Upper Multiples; Clearing Neither Sits at the Bottom Revenue growth (CY2027E, x-axis) vs EBITDA margin (CY2026E, y-axis) · 20 companies with both estimates · cuts at the covered medians (7% growth, 14% margin) · median EV/EBITDA per quadrant · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Quadrant cuts are the covered set's medians. Quadrant medians on names with a meaningful EV/EBITDA (balanced n=6; margin-only n=4; growth-only n=4; neither n=6). KRMN, B plotted at the chart edge. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 11 5% 10% 15% 20% 25% 0% 20% 40% MARGIN ONLY median 15.6x BALANCED median 17.4x NEITHER median 8.6x GROWTH ONLY median 17.7x HON TXT LDOS GD VVX CR LMT PSN HII NOC DRS LHX ITT SARO ESLT B HWM BA AVAV KRMN x: revenue growth (CY2027E) · y: EBITDA margin (CY2026E) HOW TO READ THIS The horizontal axis is revenue growth against the median for the 20 names with a forward estimate; the vertical axis is EBITDA margin on the same basis. Six names clear both bars — L3Harris Technologies, Inc. (LHX), ITT Inc. (ITT), Barrick Mining Corporation (B), Howmet Aerospace Inc. (HWM), AeroVironment, Inc. (AVAV) and Karman Holdings Inc. (KRMN) — and that group sits at 17.4x. The box clearing neither bar sits at 8.6x. Rule of 40 (revenue growth + EBITDA margin ≥ 40%): 3 of 20 names clear it (HWM, KRMN, B).

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    03 · THE AGENDA

    Push Growth, Margin and Mix: Four Moves Toward the Profile Seen at the Top of the Range

    Sets out four strategic moves toward the higher-rated profile, framed as questions for owners and acquirers.

    We frame four moves toward the profile the market rewards at the top of the range: mix, content ownership, margin and the rest. Each move is posed as a question an owner or acquirer should resolve, grounded in the cohort data shown on the prior pages. This is where the analysis turns into an agenda a management team can act on.

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    03 · THE AGENDA Push Growth, Margin and Mix: Four Moves Toward the Profile Seen at the Top of the Range NeuraCap view · framed as the questions an owner or acquirer should resolve · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All content on this page is Directional — NeuraCap advisory judgment grounded in the cohort data shown earlier. It does not constitute investment advice. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 12 Shift Mix Toward Sole-Source Content on a Program of Record The names at the top of the range pair qualified content with growth above the sector bar. Building shipset content on a long-life program, and owning the data rights and tooling behind it, is the mix shift that group has in common. What changes the answer: A recompete calendar that puts more than a manageable share of revenue into a single award window. Attach a Sustainment Tail to the Installed Fleet Aftermarket parts and repair approvals carry the annuity that holds margin through appropriations delay. Where original-equipment work dominates, each additional qualification and repair approval adds revenue that does not have to be won again. What changes the answer: Aftermarket revenue growing slower than original-equipment deliveries across a full cycle. Price Fixed-Price Development Risk into the Bid Loss programs and repeated estimate-at-completion adjustments sit with the lower part of the range in this set. Restructuring or re-pricing fixed-price development work, and capping exposure on new bids, protects the earnings base the multiple is applied to. What changes the answer: A second consecutive period of estimate-at-completion charges on the same program. Weigh Buying an Adjacent Domain Against Qualifying into It In the transaction record, unmanned systems and autonomy assets were agreed at higher earnings multiples than several structures and component assets in the same window. Build-versus-buy in an adjacent domain turns on qualification time and program access as much as on price. What changes the answer: A customer requirement lands in an adjacent domain before internal qualification can realistically be completed.

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    SECTION 04

    04

    Divider introducing the precedent transactions section.

    The transaction record puts a price on content and autonomy. This section walks through recorded deals, what buyers agreed to pay, and how each target was valued.

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    SECTION 04 04 PRECEDENT TRANSACTIONS The Transaction Record Puts a Price on Content and Autonomy Nine recorded transactions, what buyers agreed to pay, and how each target was valued. 04 of 06 Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 13

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    04 · DEAL CASE STUDIES

    Recorded Terms Run from Single Digits to High Teens on Earnings

    Presents three deal case studies with disclosed LTM multiples at announcement, from single digits to high teens.

    Recorded terms in this set run from single digits to high teens on earnings, and we tell that range through three case studies drawn from the transactions with disclosed terms. Every multiple here is LTM at announcement, a different basis from the CY2027E public multiples elsewhere in the report, so we don't draw a spread between the two. The range itself is the useful fact: it shows a client what the market has actually paid for comparable assets, not just how public names are rated today.

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    04 · DEAL CASE STUDIES Recorded Terms Run from Single Digits to High Teens on Earnings 3 of 34 transactions with disclosed terms, told as case studies · multiples on LTM financials at announcement where disclosed · the complete list is in the appendix · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 103 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 40 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. "Why the deal happened" is a NeuraCap read of the recorded evidence. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 14 Jul-2024 $1.2B Albion River LLC acquires Ducommun Incorporated EV / LTM revenue 1.6x EV / LTM EBITDA 11.3x WHY THE DEAL HAPPENED Albion River LLC is a financial buyer and Ducommun Incorporated supplies structures and electronics content across defense and commercial platforms. The transaction suggests a sponsor underwriting qualified content on long-life programs, where tooling, approvals and the sustainment tail are the asset rather than any single award. HOW THE TARGET WAS VALUED Announced at $1.2B, 11.3x EBITDA and 1.6x revenue. That earnings multiple lands inside the core band of this sector's rated names rather than at the top of the range. Jan-2025 $925M Redwire Corporation acquires Edge Autonomy Intermediate Holdings, LLC EV / LTM revenue 5.0x EV / LTM EBITDA 17.8x WHY THE DEAL HAPPENED Redwire Corporation operates in space infrastructure, while Edge Autonomy Intermediate Holdings, LLC brings unmanned aircraft and autonomy hardware already fielded. The transaction suggests a buyer adding a second domain with its own program positions rather than deepening the one it already holds. HOW THE TARGET WAS VALUED Completed at $925M, 17.8x EBITDA and 5.0x revenue. The earnings multiple sits above the middle of this sector's rated range, and the revenue standard reflects a target valued on fielded content as much as on current earnings. Jul-2023 $55M Inpixon acquires XTI Aircraft Company EV / LTM revenue 3.8x EV / LTM EBITDA n/a WHY THE DEAL HAPPENED Value shown as recorded in the filing; deal value unit unresolved. HOW THE TARGET WAS VALUED The filing records $55M of enterprise value, struck at 3.8x LTM revenue.

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    SECTION 05

    05

    Divider introducing the strategic-implications section.

    The work that moves a business toward the upper band is operational, not aspirational. This section lays out the moves an owner can start now and the evidence behind each one.

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    SECTION 05 05 STRATEGIC IMPLICATIONS The Work That Moves a Business Toward the Upper Band Operating moves an owner can start now, and the evidence that changes the answer. 05 of 06 Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 15

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    05 · STRATEGIC IMPLICATIONS

    Revenue Quality and Content Ownership Are Where This Range Separates

    Sets out strategic implications for owners, management teams and acquirers over the next twelve months.

    Revenue quality and content ownership are where this range separates, more clearly than revenue size does. We lay out what this means for owners, management teams and acquirers over the next twelve months, framed as observations rather than recommendations. That framing gives each audience a distinct, immediately actionable question to take back to their own numbers.

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    05 · STRATEGIC IMPLICATIONS Revenue Quality and Content Ownership Are Where This Range Separates NeuraCap view · the questions this data puts on the table for the next twelve months Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. This page is Directional — NeuraCap views drawn from the analysis in this report. Observations, not recommendations. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 16 FOR OWNERS Know Which Band Your Mix Implies, Not Which Band Your Revenue Implies In this set, contract mix, funded backlog and sole-source share line up with the bands more visibly than revenue size does. Test your own mix against the names rated above you and name the two or three programs that would move it. FOR MANAGEMENT TEAMS Defend Margin Through the Appropriations Calendar Continuing resolutions push awards right and squeeze the quarters in between. Sustainment and aftermarket work, plus discipline on fixed-price development bids, are the parts of the mix that hold up through the gap. FOR ACQUIRERS Qualification Time Is the Real Price of Entry Recorded terms in this set span a wide band on earnings, and the upper end sits with fielded content and autonomy assets. Where an adjacent domain needs years of qualification, the premium on an existing program position is the comparison worth running.

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    SECTION 06

    06

    Divider introducing the appendix section covering comparables, methodology and sources.

    The full universe, methodology and sources sit behind every figure in this report. This section carries the comparables detail, the valuation basis and where each disclosure lives.

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    SECTION 06 06 APPENDIX The Full Universe, Methodology and Sources Comparables detail behind every figure in the body, the valuation basis, and where each underlying disclosure lives. 06 of 06 Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 17

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    06 · PUBLIC COMPARABLES (1 OF 2)

    Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier

    Lists public comparables grouped by valuation tier, shaded against the sector median of 13.2x.

    This page lists the public comparables behind every multiple shown earlier, grouped by valuation tier and shaded against the sector median of 13.2x. All 20 rated companies appear here, with tickers linking to the underlying source for anyone who wants to trace a specific name. This is the reference table the earlier charts are built from.

    Everything on this page

    06 · PUBLIC COMPARABLES (1 OF 2) Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier Teal shading marks a EV/EBITDA above the sector median (13.2x); amber marks below · 20 rated companies; 15 not rated (no eligible EV/EBITDA) · tickers link to the underlying source · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All 20 rated rows are in this appendix and in the companion workbook, which carries the complete field set. Names without an eligible multiple are listed in the companion workbook. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 18 Company Ticker Segment EV EV/EBITDA (CY2027E) Rev growth EBITDA margin Rule of 40 PREMIUM — ≥19.0x · median 24.9x · 5 companies Honeywell International Inc. HON Diversified aerospace and industrial platforms $155B 30.7x 2% 22% 26 Elbit Systems Ltd. ESLT Diversified defense primes $34.1B 25.9x 12% 12% 25 Howmet Aerospace Inc. HWM Diversified defense primes $95.6B 24.9x 14% 32% 47 AeroVironment, Inc. AVAV Diversified defense primes $7.9B 21.0x 15% 14% 31 Karman Holdings Inc. KRMN Diversified defense primes $5.5B 19.3x 28% 30% 58 CORE — 9.9x–19.0x · median 13.2x · 10 companies The Boeing Company BA Diversified defense primes $182B 18.9x 15% 5% 23 Crane Company CR Precision flow control and engineered aerospace… $12.8B 18.0x 5% 22% 29 Leonardo DRS, Inc. DRS Diversified defense primes $9.7B 16.6x 7% 13% 21 ITT Inc. ITT Precision flow control and engineered aerospace… $21.8B 15.4x 9% 23% 33 Northrop Grumman Corporation NOC Diversified defense primes $87.5B 13.3x 7% 14% 21 General Dynamics Corporation GD Diversified defense primes $95.7B 13.1x 5% 12% 17 Lockheed Martin Corporation LMT Diversified defense primes $139B 11.6x 6% 14% 20 Huntington Ingalls Industries, Inc. HII Diversified defense primes $13.1B 10.7x 6% 8% 15 L3Harris Technologies, Inc. LHX Diversified defense primes $44.5B 10.2x 7% 17% 24 StandardAero, Inc. SARO Diversified defense primes $9.9B 10.2x 10% 14% 24

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    06 · PUBLIC COMPARABLES (2 OF 2)

    Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier

    Continues the public comparables table, completing the full set of 20 rated companies.

    This second page continues the comparables table, completing the full set of 20 rated companies shaded against the same 13.2x sector median. Together with the prior page, it gives a client the complete rated universe in one place. Anyone checking a specific name against the earlier charts can find it here.

    Everything on this page

    06 · PUBLIC COMPARABLES (2 OF 2) Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier Teal shading marks a EV/EBITDA above the sector median (13.2x); amber marks below · 20 rated companies; 15 not rated (no eligible EV/EBITDA) · tickers link to the underlying source · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All 20 rated rows are in this appendix and in the companion workbook, which carries the complete field set. Names without an eligible multiple are listed in the companion workbook. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 19 Company Ticker Segment EV EV/EBITDA (CY2027E) Rev growth EBITDA margin Rule of 40 DISCOUNT — <9.9x · median 8.0x · 5 companies Leidos Holdings, Inc. LDOS Defense IT and mission support services $22.1B 8.8x 5% 13% 18 V2X, Inc. VVX Diversified defense primes $3.2B 8.3x 5% 7% 13 Textron Inc. TXT Diversified defense primes $15.9B 8.0x 4% 12% 16 Parsons Corporation PSN Defense IT and mission support services $4.0B 5.9x 6% 9% 16 Barrick Mining Corporation B Adjacent: precious metals mining $78.9B 4.7x 13% 66% 83

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    06 · PRECEDENT TRANSACTIONS (1 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    Lists precedent transactions with disclosed terms, newest first, on an LTM-at-announcement basis.

    This page lists precedent transactions with disclosed terms, newest first, with deal values linking to the underlying filing. Multiples shown are LTM at announcement, which is a different basis from the CY2027E public multiples used elsewhere in this report. This is the primary reference for anyone testing a specific deal against the case studies discussed earlier.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (1 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 34 transactions with disclosed terms in this tier (74 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 103 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 40 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. 18 of 34 transactions shown; the rest are in the companion workbook. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 20 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Jun-2026 Tenax Aerospace Acquisition, LLC → Air Industries Group $38M 0.8x 13.8x Tenax Aerospace Acquisition, LLC agreed in Jun-2026 to acquire Air Industries Group at $38M, recorded at 13.8x EBITDA and 0.8x revenue, status announced. A sub-scale component supplier can still be agreed near the sector's middle band when the content is qualified. Jan-2025 Redwire Corporation → Edge Autonomy Intermediate Holdings, LLC $925M 5.0x 17.8x Redwire Corporation completed the purchase of Edge Autonomy Intermediate Holdings, LLC in Jan-2025 at $925M, 17.8x EBITDA and 5.0x revenue. The terms sit above the middle of this sector's rated range. Jan-2025 Red Cat Holdings, Inc. → Edge Autonomy Intermediate Holdings, LLC n/a 0.7x 8.8x Red Cat Holdings, Inc. is recorded against the same target, Edge Autonomy Intermediate Holdings, LLC, in Jan-2025, with the transaction recorded as terminated. More than one bidder appears against this asset in the same window. Jan-2025 Intuitive Machines, Inc. → Edge Autonomy Intermediate Holdings, LLC n/a 0.7x 8.8x Intuitive Machines, Inc. is recorded as completed against Edge Autonomy Intermediate Holdings, LLC in Jan-2025 at 8.8x EBITDA and 0.7x revenue. The spread against the other recorded terms for the same target is a reminder that the adjustment schedule is where these… Jan-2025 n/a → Red Cat Holdings, Inc. n/a n/a 10.6x Red Cat Holdings, Inc. is recorded as a target in Jan-2025, announced at 10.6x EBITDA. Unmanned systems names appear on both sides of the table in this record. Jan-2025 n/a → AeroVironment, Inc. n/a 6.2x 4.9x AeroVironment, Inc. (AVAV) appears as a target in Jan-2025, announced at 4.9x EBITDA and 6.2x revenue. The record carries both standards for this transaction, with the revenue multiple the higher of the two. Jan-2025 n/a → Kratos Defense & Security Solutions Inc. n/a 4.5x 4.1x Kratos Defense & Security Solutions Inc. appears as a target in Jan-2025, announced at 4.5x revenue and 4.1x EBITDA. Announced terms for growth-stage defense technology assets in this record sit across a wide band. Jul-2024 Albion River LLC → Ducommun Incorporated $1.2B 1.6x 11.3x Albion River LLC announced the acquisition of Ducommun Incorporated in Jul-2024 at $1.2B, 11.3x EBITDA and 1.6x revenue. Those terms land inside the sector's core band for a structures and electronics supplier. Apr-2024 Arcline Investment → Kaman Corporation n/a 2.4x 17.1x Arcline Investment announced the acquisition of Kaman Corporation in Apr-2024 at 17.1x EBITDA and 2.4x revenue. Specialist sponsors with government-contracting experience are active in the diversified component tier.

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    06 · PRECEDENT TRANSACTIONS (2 OF 2)

    All Precedent Transactions with Disclosed Terms, Newest First

    Continues the precedent transaction list on an LTM-at-announcement basis.

    This second page continues the precedent transaction list, newest first, on the same LTM-at-announcement basis. The remaining transactions beyond what's shown here sit in the companion workbook for full traceability. Together the two pages give a client the complete disclosed-terms record behind the case studies.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (2 OF 2) All Precedent Transactions with Disclosed Terms, Newest First 34 transactions with disclosed terms in this tier (74 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 103 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate filings collapsed); figures are shown as recorded in the filing. 40 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. 18 of 34 transactions shown; the rest are in the companion workbook. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 21 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Dec-2023 Colt CZ Group SE → Sellier & Bellot JSC n/a n/a 8.5x Value shown as recorded in the filing; deal value unit unresolved. Jul-2023 Inpixon → XTI Aircraft Company $55M 3.8x n/a Value shown as recorded in the filing; deal value unit unresolved. Nov-2022 Czechoslovak Group a.s. → Fiocchi Munizioni n/a n/a 7.2x Value shown as recorded in the filing; deal value unit unresolved. Mar-2022 Beretta Holding S.A. → RUAG Ammotec Group n/a n/a 4.9x Value shown as recorded in the filing; deal value unit unresolved. Feb-2022 Imerys S.A. → Aviation & Missile Solutions n/a 8.9x 8.9x Jun-2021 Broadstone Acquisition Corp. → Vertical Aerospace Ltd. $1.8B n/a n/a Value shown as recorded in the filing; deal value unit unresolved. Feb-2021 AeroVironment → Arcturus UAV, Inc. n/a 5.0x 12.1x Value shown as recorded in the filing; deal value unit unresolved. Dec-2019 Leidos, Inc. → Dynetics, Inc. n/a n/a 12.6x Jun-2019 Littlejohn & Company, LLC → Kaman Corporation n/a n/a 10.4x

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    06 · METHODOLOGY

    Sources, Assumptions and Data Quality

    Explains the report's sources, methodology and data-quality exclusions.

    This page sets out how the report was built: the sources behind every figure, what was excluded and why, and where each underlying disclosure lives. Every figure in this report links back to the record it was taken from, so a client can verify any number independently. That traceability is what makes the conclusions on the earlier pages usable in a client's own diligence.

    Everything on this page

    06 · METHODOLOGY Sources, Assumptions and Data Quality How this report was built, what was excluded, and where every underlying disclosure lives · as of 2026-09-28 Every figure in this report links to the record it was taken from. Where a figure has no link, the appendix names its source and the basis on which it was read. Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice 22 VALUATION BASIS Primary valuation basis: EV / EBITDA on CY2027E consensus (20 of 35 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). EV / EBITDA on CY2027E is the lead convention: it is the sector-appropriate prior for Aerospace and Defense and it clears the coverage gate with 20 of 35 companies (57%). EV / Revenue, P / E are carried as a cross-check. The set earns: 20 of the 23 companies with a reported forward EBITDA carry a meaningful one, so the profit multiple leads and a revenue multiple would understate what the market is pricing. DATA QUALITY & EXCLUSIONS 56 records were excluded or quarantined by the platform's validation gates (unit errors, implausible ratios, ineligible securities and classification failures); the full ledger ships in the companion tables and never feeds a statistic in this report. DEFINITIVE VS DIRECTIONAL Definitive content is disclosed or consensus data passed through stated arithmetic. Directional content — tier boundaries, situation cuts, "why it matters" commentary, the agenda pages — is NeuraCap analyst judgment and is labeled as such where it appears. WHAT THIS REPORT IS NOT This report characterises a sector. It does not recommend buying, selling or holding any security, and no statement in it should be read as investment advice or a price target. WHERE THE DATA LIVES 1392 registered source documents stand behind the figures in this report. Metric hyperlinks throughout the deck open the specific filing or data record; by publisher: sec.gov (1391) · home.treasury.gov (1). The companion workbook beside this deck carries the complete source index.

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    Across 35 Names, the Upper Band Sits with Content, Growth and Durable Margin.

    Closing slide restating that the upper valuation band sits with content, growth and margin.

    Across 35 names, the upper band sits with content, growth and durable margin. The companion tables carry the full universe and source index for any figure a client wants to trace further.

    Everything on this page

    Across 35 Names, the Upper Band Sits with Content, Growth and Durable Margin. NeuraCap AI — Aerospace and Defense Coverage September 2026 · Prepared by NeuraCap AI · Confidential Aerospace and Defense Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 23

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